Working in Spain:
Spanish mortgages are available to both residents and non-residents who wish to buy a property in Spain. In principle, the procedure is similar to taking a mortgage in the UK, the main difference being that the loan is in euros, and the interest rate is considerably lower than the UK.
- Mortgage terms are up to the borrower's 70th birthday
- Loans are on a capital and interest basis, although it is possible to have the initial years on an interest only basis, with the capital repayment spread across the remaining years Interest rates are variable
- Interest rates are variable
- The main source of mortgages are the Banks. Generally there is an arrangement fee of 1% of the loan, and it may be possible to have a discounted rate over an initial period
- It is necessary to ensure that all the charges and penalties are explained when applying for a mortgage. For example, some banks apply penalties if the mortgage is surrendered before the end of the term, and do not allow lump sum payments during the term in order to reduce the mortgage
- Copy of Passports
- Six months Bank Statements
- P60s for the last three years if employed
- Last three years accounts if self-employed
- Details of any existing mortgage/s
In addition you will need to obtain an NIE (National Identity) number, and open a Spanish Bank account in order to service the loan.
Prime Locations offer advice on buying with a spanish mortgage for people relocating to the Costa Blanca. Call us now:
+34 96 579 1503 mobile +34 670 341 962
or email us to get our free information for buyers pack and find out how we can make a difference...
